New Android Malware Attacks Custom ROMs

"Today Lookout disclosed a new form of Android malware found in Chinese markets which attacks third-party firmwares (ROMs). By using permissions granted to apps which are signed with the same private keys as the ROM itself, an app can update itself or install and uninstall other apps without user interaction. Most third-party ROMs use the private keys included in the Android Open Source Project, making them vulnerable to this attack. Last month's release of CyanogenMod 7.0.3 (and all subsequent builds) included an "important security fix" which a team member confirmed protects users against this vulnerability by preventing applications signed with the platform key to be installed to user or app-controlled storage.